Australia’s Westgold Resources has announced its agreement to acquire Toronto-listed Karora Resources in a cash-and-stock deal valued at approximately A$1.23 billion ($808.36 million). The acquisition is aimed at obtaining Karora’s gold assets in Western Australia, positioning the combined entity as a mid-tier gold miner with an annual production of around 400,000 troy ounces of gold and a market capitalization of approximately A$2.2 billion.
Under the terms of the deal, Karora shareholders will receive 2.524 Westgold shares, A$0.68 in cash, and 0.30 shares in a new company formed from Karora’s assets, including its stake in lithium explorer Kali Metals and a 1% lithium royalty on specific mining interests. The offer price of A$6.60 per Karora share represents a 10.1% premium to Karora’s closing share price and underscores the strategic value of Karora’s gold production assets, particularly the potential of the Beta Hunt mine.
The transaction is expected to result in significant corporate and operational synergies, enhancing the combined company’s position as the largest unhedged gold producer in Australia.